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Come October 1st 2018, a general contractor will become jointly and severally liable for subcontractors’ failure to pay employees!

With this new law now in place, general contractors’ policies towards their subcontractors and their requirement for subcontractors’ surety bond status may change significantly. Wage claims in Maryland can be made for as much as three years after an incident. As a result, general contractors are sure to demand that subcontractors obtain and maintain bonds for at least three years after performing work on a project.

What’s more, since a court may award claimants with as much as three times the wages owed, subcontractors will likely be required to obtain bonds in amounts that will be able to cover high claim amounts.

Call us at 800.921.1008 or visit BFBond.com to get bonded quickly at great rates!

A Secondhand Dealer General license is required to buy or sell secondhand articles in New York City. Buying and selling automobiles or firearms requires separate licenses.

Used clothing stores, garage sales, used boat dealers, and not-for-profit organizations are exempt from the Secondhand Dealer General license requirement. Not-for-profit organizations must keep proof of being registered as a nonprofit and must maintain books and records on their premises.

Bernard Fleischer & Sons / BFBond.com is a nationwide surety bond broker offering simple, fast solutions for all types of surety bonding in the United states. We offer competitive pricing with multiple carriers as well as world class support. For free information on your surety bonding needs, call Jose at 800-921-1008 or visit us at www.bfbond.com to receive a free quote.

There is a hidden risk facing small businesses across the country that often goes unnoticed until it suddenly rips through a firm’s finances: employee theft. It’s a crime that is costing U.S. businesses $50 billion annually, with 7% of annual revenues lost to theft or fraud according to Statistic Brain.

Studies found that U.S. businesses affected by employee theft lost an average of $1.13 million in 2016. Small and midsize businesses were hit disproportionately, representing 68 percent of the cases. Their median loss in 2016 was $289,864.

Despite the alarming levels of embezzlement taking place, it isn’t top of mind for many small-business owners.

When one hears the word “Bonds” it brings to mind an investment. But there are other types of bonds that have nothing to do with investing; they relate to business operations and function similarly to insurance.

Surety Bonds are like insurance. They back up a promise to do something; if the promise is breached, the bond pays off to complete the promise.

One common Surety Bond type is a Fidelity Bond (or Crime Bond). Fidelity bonds provide insurance against loss from employee misconduct, such as theft or embezzlement, which is not otherwise covered by a company’s regular insurance coverage. A bond can provide blanket coverage for the actions of all employees or can be tailored to cover one or more specific employees.

When safeguards like thorough employee screening and careful supervision aren’t enough, fidelity bond coverage to protect against employee theft is recommended. If one or more of your employees are entrusted to handle cash or other valuable assets, a Fidelity Bond can protect your business.

Coverage can include:

Employee theft – Stealing merchandise.

Forgery or Alteration – Checks, gift cards etc.

Theft of Money and Securities – Registers etc.

Robbery of safe, burglary of other property, stones, bullion, etc.

Computer fraud, funds transfer, diverting funds to personal accounts.

Money orders and counterfeit money.

Theft from third parties, on loan, deliveries, on customer’s premises.

The cost of Fidelity Bonds: There is no fixed rate for bonds. There are many factors that impact cost, such as the extent of coverage, whether there is a deductible (if allowed), and the surety company that issues the bond. As a rule of thumb, a fidelity bond can cost about ½% to 1% of the coverage obtained.

Surety and fidelity bonds are a risk management tool, it is helpful to discuss your business requirements with an experienced, trusted agent like BFBond/Bernard Fleischer & Sons Inc. We can advise you what coverage is best for your business when traditional insurance doesn’t provide the protection you want or require.

Many new contractors who are interested in the construction industry ask how to bid construction jobs. There is no set way to bid on construction projects, but coming up with the most accurate cost estimate and developing the lowest bid is a tried-and-true method.

Construction bidding is the process in which a general contractor is selected to work on a construction project.

In some cases, the only thing that matters in the construction bidding process is presenting the lowest price to the owner; in other cases, the contractor’s qualifications are as important—if not more important—than having the lowest dollar amount.

One of the most lucrative long-term opportunities for construction companies is winning construction bid projects. As a construction company small or large, you most likely already know obtaining business through contract bidding can be a great source of income. It is also a way of securing long-term work and steady cash-flow for years.

Virtually all of the public construction work in America is accomplished by private sector firms. This work generally is awarded to the lowest responsive bidder through the open competitive sealed bid system. Surety bonds play a critical role in making the system work.

There are also several internet search sites for current and upcoming construction bids in most states, at Bernard Fleischer and Sons/BFBond.com we are a licensed bond provider in all 50 states.

BFbond.com has an easy application that can be filled out online, which will give the necessary information for the underwriter to know who you are and where you are coming from. It is impossible to give too much information regarding a contractor. Everything the contractor does can be submitted to the company. His ability as an estimator can be determined by the listing of bids submitted in the application. Newspaper accounts of work, etc. and photos are always helpful.

THAT’S IT! Easy as 1, 2, 3, our streamlined process will get you on the fast track to obtaining a bid & performance bond.

The New York City Car Wash Wage Payment Bond

is a new requirement for the New York City DCA due to the Car Wash Accountability Act, The law enacting this bond was passed in 2015 but enforcement will begin this renewal term. The license renews 10/31 of odd years.

About: The Act requires operators to obtain a license from the City that must be renewed periodically. Applicants for a license must prove that they have the appropriate liability insurance, workers’ compensation, and disability insurance coverage. The fee for a license would be $550 biennially. The Act would also require car wash operators, as a condition for obtaining a license, to obtain a surety bond of $150,000. If the car wash is subject to a collective bargaining agreement the amount of the bond required is only $30,000. Depending on an owner’s credit score, the premium for such a bond will cost between $1,500 and $15,000 a year. We have the bonding company with the best rates.

How it works: the purpose is to ensure that car wash operators pay all earned wages, interest on wages, and fringe benefits due to their employees. If the principal fails to pay all sums appropriately, then the Bonding Company will pay and go after the principals to recover any funds they have paid out. The bond protects employees from financial loss.

As part of the motor vehicle dealer licensing process, states require that prospective dealers post a surety bond called a motor vehicle dealer bond to protect the public from any inappropriate or illegal actions on behalf of the automotive dealer.

Vehicle Dealership Surety Bonds in Every State

The state agency that is in charge of licensing auto dealers should tell you if you need a bond before you begin the application process. If you haven’t been told that you need a bond, it’s a good idea to contact the agency and make sure you don’t need one. You might also take the time to learn more about the dealer licensing process in your state.

Generally, obtaining and filing a surety bond is a normal part of the dealer licensing process in every state.

Don’t get caught with a bond expiration! Buy your bond now with our new quick, safe and efficient online application. New Jersey Motor Vehicle Dealer bonds are coming up for renewal on 4/1/2017, Bernard Fleischer and Sons Inc./BFBond.com is a trusted provider of these bonds with very competitive rates and underwriting! Contact us today to apply or renew your bond with us. Want to learn more about Motor Vehicle Dealer Bonds? visit our blog for an informative F.A.Q. here, visit our website at www.BFBond.com, call us at 800.921.1008 or fill out our EZ application.

Bid Bond:

A type of contract surety bond that
ensures a bidder for a supply or construction
contract will enter into the contract within the
stipulated timeframe if the company wins the bid.
Default results in the obligee (a government
agency, in this case) receiving the difference
between the amount of the principal’s bid and
the bid of the next low bidder or company
who qualifies for the contract, or the amount
of the bond.

Commercial Surety:

A type of surety bond that
can be required by state and local regulators in
a wide variety of situations to protect consumers
and taxpayers. Some of the most significant for
government policymakers include: license and
permit bonds, reclamation bonds, mortgage
broker bonds and subdivision bonds.

Contract Surety:

Surety bonds that involve
construction projects. In the event a contractor
defaults, contract surety bonds ensure funds
are available to complete the contract and pay
subcontractors, suppliers and laborers.

Fidelity Bond:

A bond a business seeks to
protect itself in the event of a loss incurred
because of employee dishonesty or misconduct.
Some states require these bonds for businesses,
such as title insurance companies and credit
unions, that do business with consumers.

License and Permit Bonds:

Statutes and
regulations require these bonds if a company
seeks to obtain a license or permit in a state
or local jurisdiction. If a principal violates its
obligations, this bond pays the obligee or
other third party.

Miller Act:

Law passed in 1935 that requires
performance and payment bonds for federal
construction projects over a designated
amount, currently for contracts over $150,000.

Money Transmitter Bond:

A surety bond that
guarantees money transmission companies
offer services in compliance with state or local
statutes and regulations.

Mortgage Bond:

A type of commercial surety
required by a state or local regulatory agency
for mortgage brokers to become licensed in
that state.

Obligee:

The entity that requires the bond
and is protected if there is a loss or default.

Payment Bond:

A bond given by a contractor
to guarantee payment to subcontractors,
laborers and suppliers for work performed
under the contract.

Performance Bond:

A bond that guarantees
performance of the terms of a written contract.

Premium:

Required by a surety company
from the principal for the issuance of a bond.
Performance and payment bonds come with
a one-time premium that typically equals up
to 2 percent of the contract price.

Principal:

Also called “obligor.” This is the
party who seeks the bond and is bound by the
underlying obligation.
Reclamation Bond: Required by a state
regulatory agency, such as the Department
of Environmental Quality, for a business that
seeks to mine or perform related activities on
public lands. These bonds provide a financial
guarantee that the public lands mined will
be restored.

Subcontractor Bond:

A bond that a general
contractor may require of a subcontractor,
which guarantees the subcontractor will
perform work in accordance with the terms of
the contract and will pay for certain labor and
materials under the contract.

Subdivision Bond:

Developers must get this
bond from a surety if they plan to develop a
plot in a municipality to sell lots or homes.
Local development authorities require
these bonds, which guarantee a developer’s
obligation that the project will adhere to state
and local statutes and regulations, before they
issue a development permit.

Surety:

Third party that issues the bond to the
principal and is responsible for fulfilling the
claim in the event of a default or loss.

Surety Bonds:

A written agreement where a
surety obligates itself to a second party, called
the obligee, to answer for the default of the
principal. In the case of public works contracts,
the obligee would be the state agency and the
principal would be the contractor.